A Plan for Real and Lasting Change
Pension Fairness Platform
Changes in the Benefits for Current Employees
(Applies to all public safety employees hired before January 1, 2011)
1) A sustainable pension system must have the employer and employee contributing equally toward to the cost of the pension benefit. Public safety employees only contribute about one-third toward the cost of their pension benefit while taxpayers pay the remainder plus cover any unfunded liabilities. Our platform requires public safety employees to contribute more toward the cost of their pensions.
2) The annual 3% compounded cost-of-living-adjustment (COLA) is one of the biggest cost drivers of funding pensions. Our platform requires that the COLA be “right-sized” and not compounded annually.
3) Currently, public safety employees hired before January 1, 2011 can retire with full benefits at age 50. This often leaves taxpayers supporting that employee’s pension benefits for a longer period than they actually worked for the community. Our platform requires that the retirement age be increased.
4) There are 638 individual public safety pension funds, one for each police and fire departments. All other municipal employees are part of the Illinois Municipal Retirement Fund (IMRF), a multiple employer pension system which is considered the gold standard of pension funds. Our platform calls for the consolidation of this inefficient system into one like the IMRF to increase investment returns and lower overall operational expenses.